China Seeks Clearer View of Government Debt Mountain

Local Governments Have Borrowed a Pile of Money in Recent Years, Leaving Even Beijing Wondering How Much

By
Shen Hong

October 20, 2013

SHANGHAI—In the next few weeks, the Chinese government is expected to release the results of an ambitious effort to calculate a seemingly simple figure: just how much the country's local governments have borrowed from banks and investors in the past few years.

Estimates vary so widely they are almost meaningless. Government officials, analysts and economists have offered numbers that range from 15 trillion yuan to 30 trillion yuan ($2.46 trillion to $4.92 trillion), which equals nearly 30% to 60% of gross domestic product.